Disciplined Leadership Approach™

Bottom Up – Finding the Right Candidates

• In tandem with the top-down process, fundamental analysis is conducted on a daily basis to identify leading investment candidates
• Ranking process based on a variety of quantitative and qualitative assessments applied daily to both portfolio and broad investment universe
• Once identified, securities undergo further due diligence, including management interviews
• Screening process to identify securities undergoing positive change – good and getting better, not broken and getting fixed
• In accordance with our top-down analysis, representative candidates are identified from our “farm team” and positions are added slowly as portfolios are transitioned

Once added, allocations are increased only on a price advance, never on a price decline